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Safeway to Acquire G&G Supermarkets

Safeway to Acquire G&G Supermarkets


PLEASANTON, CA
Monday, October 31st, 2016

As the banner continues to focus on further growth in the buy-side segment, Safeway will be expanding with a Northern California focus. The Albertsons banner has announced that it will be purchasing the G&G Supermarkets in Sonoma County, California.

“We are very excited about this opportunity and look forward to bringing these locations into the Northern California Safeway family,” said Safeway in a statement, according to the North Bay Business Journal. “[We] are working together to ensure a smooth transition for store employees and customers.”

G&G Supermarkets has been a family-owned grocery business and staple in Sonoma County since 1963. The chain has a 96,000-square-foot store in Santa Rosa and a 55,000-square-foot store in Petaluma.

Safeway has reportedly agreed to hire 250 G&G employees at the locations, which will be converted to the Safeway name. G&G CEO Teejay Lowe also indicated that Safeway agreed to employ his team at their current compensation levels or better. The move will also provide G&G employees with new opportunities for growth.

Teejay Lowe, CEO, G&G Supermarkets (Photo: North Coast Wine Challenge/ The Press Democrat)“It’s a good time for them to retire,” Lowe said, according to the North Bay Business Journal, naming that the sale was due in part to the age of the owners. G&G is owned by Lowe’s father Robert Gong and three of his uncles. “They’ve been serving Sonoma County for 53 years. It’s a good time for them to enjoy the holidays.” 

Lowe also stated that the sale deal met all of G&G’s requirements, and is one that is supported by the entire family. Lowe did not state what part he would play in the new ownership.

Each location will close for a short period of time after the deal is finalized to make the transition to the Safeway name. Safeway expects this to occur sometime in December.

The terms of the sale were not disclosed by either party, and G&G Supermarkets workers were informed this past Thursday of the sale. Safeway already has two pre-existing locations in G&G’s areas, both in Santa Rosa and Petaluma.

This acquisition is right in line with Safeway’s expansive growth focus. As we recently reported, Safeway has plans to place three new stores in the Bay Area market. 

As buy-side banners continue to take new locations and realms of business under their wings, Deli Market News will have the latest on acquisitions and their impact.

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